3. Demographic Factors
• Age
• Stage in family life cycle
• Occupation
• Economic circumstances
• Lifestyle
• social influence variables
• family background
• reference groups
• roles and status
4. The Consumer Buying Process
Marketing Inputs
Purchase Decisions
Product
Product Choice
Price
Promotion
Consumer Location Choice
Brand Choice
Place Other Choices
Psychological Inputs
Culture
Attitude
Learning
Perception
Based on Cohen (1991)
6. UK socioeconomic classification scheme
Class name Social status Occupation of head of % of
household population
A Upper middle Higher managerial, 3
administrative or professional
B Middle Intermediate managerial, 14
administrative or professional
C1 Lower middle Supervisors or clerical, junior
managerial, administrative or 27
professional
C2 Skilled working Skilled manual workers 25
D Working Semiskilled and unskilled 19
workers
E Those at lowest levels of Pensioners, widows, casual or 12
subsistence lower-grade workers
7. Types of buyer behaviour
• Complex buyer behaviour e.g. Intel
Pentium Processor
• Dissonance-reducing behaviour (brand
reduces after-sales discomfort)
• Habitual buying behaviour e.g. salt - little
difference
• variety seeking behaviour - significant
brand differences e.g soap powder
8. The Buying Decision Process
• recognition of the need e.g a new PC
• choice of involvement level (time and effort justified) e.g.
two week ends
• identification of alternatives e.g. Dell, PC World
• evaluation of alternatives I.e. price, customer service,
software support, printer/scanner package
• decision - choice made e.g Epsom
• action e.g buy Epsom model from Comet
• post-purchase behaviour I.e. use, breakdowns, etc
9. Organisational Buyer Behaviour
‘The decision-making process by which
formal organisations establish the need for
purchased products and services, and
identify, evaluate, and choose among
alternative brands and suppliers’
Kotler and Armstrong 1989
10. Characteristics of organisational
buyer behaviour
• Organisation purpose - Goodyear Tyres
• Derived demand - follows cars and lorries
• Concentrated purchasing - stockholdings of rubber
• Direct dealings - large purchaser of basic rubber -
no intermediaries
• Specialist activities - learns about the product
• Multiple purchase influences - DMU - Decision
making unit